HK Stock Market Move | Coal stocks saw an expanded increase in the afternoon, with the thermal coal price index rising across the board. Institutions have pointed out the importance of paying attention to the potential severe mismatch between supply and demand.

Coal stocks saw an expanded increase in the afternoon. As of the time of this report, MONGOLIA ENERGY (00276) rose by 9.26%, reaching HKD 0.59; KINETIC DEV (01277) increased by 5.88%, reaching HKD 1.89; Yankuang Energy Group (01171) gained 5.25%, reaching HKD 12.22; and China Coal Energy (01898) rose by 2.78%, reaching HKD 10.73. On the news front, on August 5, the thermal coal price index was raised across the board, with the 5,500 kcal price reported at RMB 839/ton, an increase of RMB 5/ton. It is reported that supply-side tensions still persist. China Great Wall pointed out that the comprehensive operating rate in Shanxi, Shaanxi, and Inner Mongolia has continued to decline since the May 22 mine explosion in Shanxi. The operating rate in Shanxi has a significant impact, highlighting the serious supply-demand mismatch that could occur in summer. Changjiang noted that the coal industry will face a window period for capacity reduction in 2026, with the effective supply of thermal coal expected to decrease by 1.9% year-on-year to 3.806 billion tons, placing short-term supply under pressure. Meanwhile, on the policy front, efforts to "reduce competition" continue, promoting price stabilization through production capacity verification. In the first half of 2026, the average price of thermal coal at Qinhuangdao Port is expected to rise by 13.2% year-on-year to RMB 767/ton.